H-1B VISA WILL NOT DECREASE FOR IT PROFESSIONALS

Commerce and Industry Minister Nirmala Sitharaman has
said that the number of H-1B visas for Indian IT professionals will not be
reduced.

Commerce and Industry Minister Nirmala Sitharaman has
tried to calm the nervousness about the controversial visa issue. He has said
that the number of H-1B visas for Indian IT professionals will not be reduced.
Sitharaman has appealed not to be disturbed by the industry.

He talked to reporters here that he thinks that America
wants to make some improvements in the lottery process. It is not that he is
making a change in numbers. The number will not be less so there is no need to
worry about the visa front. Recently, the sense of protectionism has increased
in various developed economies including the United States. Under this, the
demand for the protection of the employment of the locals and the standard for
foreign professionals has caught hold of it.

Sitharaman told reporters in New Delhi “there is no need
to get panicky on the visa front. The lottery process is something I suppose the
US wanted to do a correction on. The numbers aren’t something they are
changing, so these won’t come down.

In America, the Trump Administration wants to replace the
current lottery system with a more qualified-based immigration policy.
Sitharaman said that only 17 per cent of the total American visa goes to Indian
companies. Many US companies benefit from the services offered by these Indian
firms. From time to time, India has expressed hope that review of the H-1B visa
process will take into account positive relations between the two countries.

Over the past few weeks, there is a growing sentiment of
protectionism across various developed economies, including the US, seeking to
safeguard jobs for locals and raise the bar for foreign workers. The Trump
administration in the US, wants to replace the current lottery system with an immigration
policy that is based on merit.

She noted that just 17% of total US visas go to Indian companies
and a number of American firms benefit from services provided by Indian firms.
India seeks some hope that the review of H1B visa process will take the
positive relationship between India and the US into consideration. Any change
in visa norms can affect the movement of labor as well as spike operational
costs for IT players.

Indian IT firms have been ramping up hiring of locals in
the US, in response to the proposed tightening of the visa regime, a market
that accounts for almost 60% of the India’s technology export revenues. On
changes in the selection process for H1B visa, the minister hoped that “where
the high skill set is required, US would look for that, in place for first time
graduates”.

The US can become more choosy in selecting the visas, but
the “numbers are not changing”. “No need of getting worried... because the
number of H1B visas that we have got, we will continue to get that,” she
promised.

In the previous month, US President Donald Trump had
signed an executive order for narrowing the H1B visa programme to stop its
“abuse” and ensure the visas are given to the “most- skilled or highest paid”
petitioners, a decision that is seen to impact India’s $150 billion IT
industry. A serious concern was expressed by the Indian IT industry over the
issue as these visas were mainly used for short-term work in the US.

The H1B is a non-immigrant visa that allows US companies
to employ foreign workers in specialty occupations that require theoretical or
technical expertise in specialised fields. The IT companies of India depend on
it to hire tens of thousands of employees every year for their US operations.

The US market accounts for about 60% of the revenue of
Indian IT. It was one of the major election promises from Trump to reform the
H1B visa system. As per several US reports, a majority of the H1B visas every
year are grabbed by Indian IT professionals. India possesses the highest pool
of qualified IT professionals, whose services go a long way in making American
companies globally competitive.